The U.K. government is asking financial services players for ideas to make the country a more attractive location to set up, manage and administer money management strategies.
The government said in its 2020 budget that it would review the U.K. funds regime, covering tax and relevant areas of regulation.
The consultation paper launched Tuesday aims to identify options that will make the U.K. a more attractive money management location, supporting a wider range of more efficient investments better suited to investors' needs, the paper said.
"In most situations, the U.K. funds regime achieves tax-efficient outcomes. However, the government is aware of a number of concerns that have been raised about the competitiveness of the U.K. regime relative to other countries," the paper said.
The paper also looks at the potential for new fund structures, whether reforms to the real estate investment trusts regime are necessary and how the Financial Conduct Authority's timescales for authorizing strategies compare internationally.
"The U.K.'s financial services industry is a national asset," John Glen, economic secretary to the treasury, said in the consultation paper. It employs more than 1 million people, represents about 10% of total tax revenues and the U.K.'s money management industry represents about £9.9 trillion ($13.54 trillion) in assets.
"Asset managers sit at the heart of this industry, supporting sectors from insurance to banking, channeling capital into productive investments and at the same time helping millions of individuals save and invest," Mr. Glen said.
He said the U.K. economy is at a "key moment" as it moves forward in a new relationship with the European Union post-Brexit and looks to rebuild from the impacts of COVID-19.
"Improvements to the funds regime will result in a wider range of more efficient investments, better suited to investors' needs. With the correct fund structures, tax regime and regulatory environment, we can unleash the investment into productive and green technologies that will enable us to meet this government's ambitious and pioneering commitment to net-zero by 2050. And growing the number of funds located in the U.K. can also level up our economy, by supporting jobs outside of London," Mr. Glen said.
Comments are welcomed from all interested parties and are due April 20. Responses should be sent by email.